Klondex Provides Exploration Update at Hollister

Bay Street

8 years ago

VANCOUVER, BC–(Marketwired – October 11, 2016) – Klondex Mines Ltd. (TSX: KDX) (NYSE MKT: KLDX) (“Klondex”or the “Company”) is pleased to provide an update on recent and historic exploration results at its Hollister Mine in Nevada (see FIGURE 1).

Gloria West Drilling Highlights: (see TABLE 1 below)

GLOR15-034: 4.18 opt AuEq over 8.4 ft, or 143.3 g/t over 2.6 m
- Including 18.36 opt AuEq over 1.7 ft, or 629.6 g/t over 0.5 m
GLOR14-001: 2.42 opt AuEq over 2.2 ft, or 83.1 g/t over 0.7 m
GLOR14-001: 3.63 opt AuEq over 0.5 ft, or 124.3 g/t over 0.2 m
GLOR15-006: 3.59 opt AuEq over 1.1 ft, or 123.0 g/t over 0.3 m
GLOR15-010: 1.39 opt AuEq over 7.2 ft, or 47.8 g/t over 2.2 m
- Including 2.48 opt AuEq over 3.3 ft, or 85.2 g/t over 1.0 m
GLOR15-011: 2.20 opt AuEq over 1.4 ft, or 75.6 g/t over 0.4 m
GLOR15-020: 1.43 opt AuEq over 4.1 ft, or 48.9 g/t over 1.2 m
- Including 8.07 opt AuEq over 0.7 ft, or 276.7 g/t over 0.2 m
GLOR15-025: 3.85 opt AuEq over 0.6 ft, or 132.0 g/t over 0.2 m
GLOR15-026: 2.20 opt AuEq over 2.5 ft, or 75.32g/t over 0.8 m
GLOR15-032: 3.74 opt AuEq over 1.7 ft, or 128.2 g/t over 0.5 m

A total of 36 underground holes totaling 17,998 ft. (5,486 m) were drilled in 2014 and 2015 by the prior owner and were not previously released. These holes encountered multiple veins and extended the Gloria vein system approximately 800 ft to the West and approximately 300 ft vertically. The Gloria vein system remains open up and down dip and along strike to the West. Klondex intends to infill drill the Gloria vein system in Q4 2016 to develop a Mineral Resource estimate and continue stepping out to the West (see FIGURE 2).

Hatter Graben Historical Drilling Highlights:

H8-264: 0.54 opt Au over 7.8 ft, or 18.6 g/t over 2.4 m (est. true width of 5.5 ft, or 1.7 m)
H8-269: 1.77 opt Au over 2.1 ft, or 60.7 g/t over 0.6 m (est. true width of 1.5 ft, or 0.5 m)
H8-274: 7.8 opt Au over 1.4 ft, or 268.0 g/t over 0.4 m (est. true width of 1.0 ft, or 0.3 m)
H8-281: 1.4 opt Au over 2.3 ft, or 48.0 g/t over 0.7 m (est. true width of 1.3 ft, or 0.4 m)
H8-285: 0.47 opt Au over 12.5 ft, or 16.0 g/t over 3.8 m (est. true width of 8.8 ft, or 2.7 m)

The historic drilling program was conducted in 2008. Three holes did not render any significant results. This surface exploration drill program discovered the Hatter Graben vein system, an east-west trending structural zone containing several sub-parallel high grade veins. Results of this program indicate the system is approximately 1,800 ft (~550 m) in strike and approximately 1,200 ft (365 m) vertical extent and open in all directions. Klondex intends to infill the widely spaced drill holes from surface to develop a Mineral Resource estimate.

Mr. Paul Huet, President and CEO commented, “We are extremely excited to be reunited with this important asset. Several members of the Klondex team have significant experience with and knowledge of Hollister. We believe the Gloria and the Hatter Graben zones have significant exploration potential.” Mr. Huet continued, “We have successfully completed the consolidation of Fire Creek, Midas and Hollister, three high grade underground mines servicing one central mill at Midas, providing a unique opportunity to capture significant synergies among these operations. This has been a long-term vision and we are extremely proud of our team to be the company to finally accomplish this goal.”

To the knowledge of Klondex, vein samples were analyzed by either metallic screen or standard fire assay procedures and QA/QC results were within acceptable limits. Assays were performed by ALS Chemex of Reno, Nevada, an ISO 17025 accredited independent laboratory. The historical data was verified by Klondex’s technical team led by Brian Morris, Vice President of Exploration of Klondex and a “qualified person” within the meaning of National Instrument 43-101 (“NI 43-101”).

About Klondex Mines Ltd. (www.klondexmines.com)
Klondex is a well-capitalized, junior-tier gold and silver mining company focused on exploration, development, and production in a safe, environmentally responsible, and cost-effective manner. The Company has 100% interests in three producing mineral properties: the Fire Creek Mine and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, and the True North Gold Mine (formerly the Rice Lake Mine) and mill in Manitoba, Canada. The Company also has 100% interests in two recently acquired projects, the Hollister mine and the Aurora (formerly known as Esmeralda) mine and ore milling facility, also located in Nevada, USA.

Qualified Person
Scientific and technical information in this press release has been reviewed and approved by Brian Morris (AIPG CPG-11786), a “qualified person” within the meaning of NI 43-101.

Cautionary Note Regarding Forward-looking Information
This news release contains certain information that may constitute forward-looking information or forward-looking statements under applicable Canadian and United States securities legislation (collectively, “forward-looking information”), including but not limited to the exploration potential at the Hollister Mine, future exploration plans of Klondex and any synergies that may be captured by Klondex as a result of the consolidation of Fire Creek, Midas and Hollister. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained in such information. These uncertainties and risks include, but are not limited to, the strength of the global economy; the price of gold; operational, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations; and the ability of Klondex to fund its substantial capital requirements and operations. Risks and uncertainties about the Company’s business are more fully discussed in the Company’s disclosure materials filed with the securities regulatory authorities in Canada and United States available at www.sedar.com and www.sec.gov, respectively. Readers are urged to read these materials. Klondex assumes no obligation to update any forward-looking information or to update the reasons why actual results could differ from such information unless required by law.

TABLE 1: Gloria West Drill Program – Complete Results

Hole ID

Azi

Incl

From

Length

Au Grade

Ag Grade

AuEq Grade

From

Length

Au Grade

Ag Grade

AuEq Grade

(ft)

(oz/st)

(m)

(g/Tonne)

Vein

GLOR14-001

357

-45

1244

897.5

900.0

2.5

1.187

3.44

1.235

273.6

274.3

0.8

40.69

118.09

42.33

Gloria

and

1006.0

1007.4

1.4

0.338

6.92

0.434

306.6

307.1

0.4

11.60

237.19

14.89

Gloria

and

1046.0

1048.5

2.5

1.694

2.55

1.730

318.8

319.6

0.8

58.09

87.27

59.30

Gloria

and

1056.0

1061.0

5.0

0.246

0.72

0.256

321.9

323.4

1.5

8.42

24.77

8.76

Gloria

and

1102.5

1103.4

0.9

0.428

4.23

0.487

336.0

336.3

0.3

14.68

145.11

16.70

Gloria

and

1148.8

1151.0

2.2

2.168

18.36

2.422

350.2

350.8

0.7

74.32

629.50

83.05

Gloria

and

1158.5

1161.0

2.5

0.965

5.55

1.042

353.1

353.9

0.8

33.08

190.15

35.72

Gloria

and

1186.7

1187.2

0.5

3.363

19.00

3.626

361.7

361.9

0.2

115.29

651.52

124.33

Gloria

GLOR14-002

347

-45

1334

968.0

969.8

1.8

0.638

1.30

0.656

295.0

295.6

0.5

21.86

44.40

22.48

Gloria

and

1031.3

1032.4

1.1

2.456

8.99

2.580

314.3

314.7

0.3

84.12

308.00

88.39

Gloria

and

1110.9

1112.5

1.6

0.864

1.00

0.878

338.6

339.1

0.5

29.60

34.30

30.07

Gloria

and

1183.6

1186.2

2.6

0.525

1.39

0.544

360.8

361.6

0.8

17.98

47.72

18.64

Gloria

incl

1183.6

1184.3

0.7

1.471

3.33

1.517

360.8

361.0

0.2

50.39

114.00

51.97

Gloria

GLOR15-003

413

293.2

294.5

1.3

0.820

10.20

0.961

89.4

89.8

0.4

28.13

319.00

32.55

Gloria

GLOR15-004

380

192.5

194.8

2.3

1.825

1.67

1.848

58.7

59.4

0.7

62.57

57.20

63.37

Gloria

and

261.5

263.1

1.6

0.157

1.30

0.175

79.7

80.2

0.5

5.39

44.40

6.01

Gloria

and

320.5

321.0

0.5

3.439

13.20

3.622

97.7

97.8

0.2

117.92

413.00

123.65

Gloria

and

357.2

358.3

1.1

0.132

27.70

0.516

108.9

109.2

0.3

4.53

866.00

16.54

Gloria

GLOR15-005

-24

380

212.0

212.7

0.7

1.534

1.55

1.556

64.6

64.8

0.2

52.59

53.20

53.33

Gloria

and

289.7

290.2

0.5

0.113

0.22

0.116

88.3

88.5

0.2

3.86

7.60

3.97

Gloria

and

303.0

306.0

3.0

0.332

3.00

0.374

92.4

93.3

0.9

11.40

100.00

12.78

Gloria

GLOR15-006

425

238.2

238.7

0.5

1.332

6.00

1.415

72.6

72.8

0.2

45.66

218.00

48.68

Gloria

and

270.0

271.1

1.1

3.542

3.30

3.588

82.3

82.6

0.3

121.45

109.00

122.97

Gloria

and

331.8

332.4

0.6

0.531

1.53

0.552

101.1

101.3

0.2

18.20

52.50

18.93

Gloria

GLOR15-007

401

182.5

184.9

2.4

0.645

0.62

0.654

55.6

56.4

0.7

22.13

21.30

22.43

Gloria

and

270.2

271.4

1.2

0.153

20.30

0.434

82.4

82.7

0.4

5.25

695.00

14.89

Gloria

GLOR15-008

379

247.2

247.7

0.5

0.123

9.20

0.251

75.3

75.5

0.2

4.20

316.00

8.58

Gloria

and

260.0

260.5

0.5

0.137

2.16

0.167

79.2

79.4

0.2

4.69

74.10

5.72

Gloria

and

324.6

325.1

0.5

0.200

8.90

0.323

98.9

99.1

0.2

6.87

304.00

11.09

Gloria

GLOR15-009

-11

430

146.7

147.4

0.7

0.671

0.57

0.679

44.7

44.9

0.2

23.00

19.40

23.27

Gloria

and

162.4

163.6

1.2

0.224

0.21

0.227

49.5

49.9

0.4

7.67

7.30

7.77

Gloria

and

272.0

275.3

3.3

0.240

0.95

0.254

82.9

83.9

1.0

8.24

32.64

8.69

Gloria

and

279.4

280.2

0.8

0.170

12.80

0.347

85.2

85.4

0.2

5.84

440.00

11.94

Gloria

GLOR15-010

426

147.3

154.5

7.2

1.319

5.41

1.394

44.9

47.1

2.2

45.22

184.98

47.79

Gloria

incl

147.3

150.6

3.3

2.340

10.38

2.484

44.9

45.9

1.0

80.23

355.00

85.16

Gloria

and

272.8

276.6

3.8

0.500

16.96

0.735

83.1

84.3

1.2

17.12

582.42

25.20

Gloria

GLOR15-011

377

134.9

136.0

1.1

2.110

4.60

2.174

41.1

41.5

0.3

72.33

157.00

74.50

Gloria

and

236.3

237.7

1.4

2.164

2.88

2.204

72.0

72.5

0.4

74.19

98.80

75.56

Gloria

and

243.7

244.4

0.7

0.113

0.33

0.118

74.3

74.5

0.2

3.88

11.40

4.04

Gloria

and

337.0

338.0

1.0

0.424

4.20

0.482

102.7

103.0

0.3

14.53

144.00

16.53

Gloria

GLOR15-012

-21

350

No Significant Intercepts

GLOR15-013

355

328

93.9

95.0

1.1

0.495

0.58

0.503

28.6

29.0

0.3

16.97

19.90

17.25

Gloria

and

178.0

179.8

1.8

0.266

0.28

0.270

54.3

54.8

0.5

9.12

9.70

9.26

Gloria

and

241.7

243.0

1.3

1.083

2.06

1.112

73.7

74.1

0.4

37.13

70.50

38.11

Gloria

GLOR15-014

425

70.0

71.3

1.3

0.572

0.93

0.585

21.3

21.7

0.4

19.60

31.90

20.04

Gloria

and

242.1

245.6

3.5

0.695

2.62

0.731

73.8

74.9

1.1

23.82

89.74

25.06

Gloria

incl

244.5

245.6

1.1

1.384

3.70

1.435

74.5

74.9

0.3

47.46

127.00

49.22

Gloria

and

305.0

305.6

0.6

1.126

4.55

1.189

93.0

93.1

0.2

38.60

156.00

40.76

Gloria

GLOR15-015

381

54.5

55.5

1.0

0.620

0.72

0.630

16.6

16.9

0.3

21.26

24.60

21.61

Gloria

and

190.9

192.5

1.6

0.178

1.36

0.197

58.2

58.7

0.5

6.10

46.60

6.75

Gloria

and

257.9

262.7

4.8

0.349

3.83

0.403

78.6

80.1

1.5

11.99

131.27

13.81

Gloria

and

269.7

273.7

4.0

0.526

3.78

0.579

82.2

83.4

1.2

18.06

129.62

19.85

Gloria

GLOR15-016

-17

325

83.9

85.1

1.2

0.238

0.66

0.247

25.6

25.9

0.4

8.17

22.70

8.48

Gloria

and

171.4

172.1

0.7

0.371

0.37

0.376

52.2

52.5

0.2

12.73

12.60

12.91

Gloria

and

225.3

226.8

1.5

1.095

0.98

1.109

68.7

69.1

0.5

37.53

33.70

38.00

Gloria

and

247.5

253.0

5.5

0.226

0.80

0.237

75.4

77.1

1.7

7.75

27.43

8.13

Gloria

GLOR15-017

191

3.6

452

No Significant Intercepts

GLOR15-018

415

174.7

175.6

0.9

0.467

1.13

0.483

53.2

53.5

0.3

16.00

38.80

16.54

Gloria

and

276.6

280.3

3.7

1.208

28.47

1.602

84.3

85.4

1.1

41.41

976.00

54.94

Gloria

GLOR15-019

350

157.8

158.3

0.5

0.393

1.12

0.408

48.1

48.2

0.2

13.47

38.30

14.00

Gloria

and

265.5

266.0

0.5

0.126

3.10

0.169

80.9

81.1

0.2

4.33

107.00

5.81

Gloria

GLOR15-020

-1

325

214.0

218.5

4.5

0.844

0.86

0.856

65.2

66.6

1.4

28.93

29.73

29.35

Gloria

incl

217.4

218.5

1.1

3.191

3.10

3.234

66.3

66.6

0.3

109.39

107.00

110.87

Gloria

and

226.7

227.3

0.6

0.175

1.11

0.190

69.1

69.3

0.2

6.01

38.10

6.54

Gloria

and

229.0

233.1

4.1

1.407

1.28

1.425

69.8

71.0

1.2

48.24

44.09

48.86

Gloria

incl

232.4

233.1

0.7

7.987

5.90

8.069

70.8

71.0

0.2

273.84

203.00

276.65

Gloria

GLOR15-021

-26

350

No Significant Intercepts

GLOR15-022

417

171.7

172.7

1.0

1.384

1.93

1.411

52.3

52.6

0.3

47.46

66.00

48.38

Gloria

and

271.7

272.8

1.1

0.190

37.20

0.706

82.8

83.1

0.3

6.50

1277.00

24.21

Gloria

GLOR15-023

375

203.1

205.6

2.5

0.385

9.10

0.511

61.9

62.7

0.8

13.20

313.00

17.54

Gloria

and

244.3

245.0

0.7

0.193

2.34

0.225

74.5

74.7

0.2

6.63

80.10

7.74

Gloria

GLOR15-024

2.5

1300

187.0

190.1

3.1

0.704

2.00

0.732

57.0

57.9

0.9

24.12

68.63

25.08

Gloria

incl

187.0

188.0

1.0

1.573

2.81

1.612

57.0

57.3

0.3

53.93

96.40

55.26

Gloria

GLOR15-025

-14

327

178.8

179.4

0.6

3.830

1.43

3.850

54.5

54.7

0.2

131.32

48.90

132.00

Gloria

and

189.3

190.0

0.7

0.159

1.91

0.186

57.7

57.9

0.2

5.45

65.60

6.36

Gloria

and

196.0

196.5

0.5

0.106

0.92

0.119

59.7

59.9

0.2

3.65

31.60

4.09

Gloria

GLOR15-026

350

450

182.4

184.9

2.5

2.119

5.60

2.197

55.6

56.4

0.8

72.66

192.00

75.32

Gloria

and

249.0

249.5

0.5

1.396

7.00

1.493

75.9

76.0

0.2

47.86

241.00

51.20

Gloria

and

397.0

397.6

0.6

0.364

7.30

0.465

121.0

121.2

0.2

12.47

250.00

15.93

Gloria

GLOR15-027

190

452

No Significant Intercepts

GLOR15-028

375

159.7

162.5

2.8

0.182

0.20

0.185

48.7

49.5

0.9

6.24

7.00

6.33

Gloria

and

204.3

207.0

2.7

0.529

27.54

0.911

62.3

63.1

0.8

18.13

944.89

31.24

Gloria

and

218.0

222.9

4.9

1.296

60.15

2.130

66.4

67.9

1.5

44.42

2061.67

73.01

Gloria

incl

220.9

222.9

2.0

2.773

147.10

4.813

67.3

67.9

0.6

95.06

5042.00

164.97

Gloria

GLOR15-029

-4

350

125.5

126.5

1.0

0.303

0.54

0.310

38.3

38.6

0.3

10.40

18.40

10.65

Gloria

and

163.5

166.3

2.8

0.134

1.18

0.150

49.8

50.7

0.9

4.58

40.40

5.14

Gloria

GLOR15-030

-30

350

200.0

200.6

0.6

0.225

0.22

0.228

61.0

61.1

0.2

7.71

7.40

7.81

Gloria

and

211.5

213.2

1.7

0.122

2.02

0.150

64.5

65.0

0.5

4.17

69.10

5.13

Gloria

GLOR15-031

400

130.0

130.6

0.6

0.165

3.30

0.211

39.6

39.8

0.2

5.66

112.00

7.21

Gloria

and

134.0

136.4

2.4

0.127

5.20

0.199

40.8

41.6

0.7

4.35

177.00

6.80

Gloria

and

146.4

146.9

0.5

0.148

0.83

0.159

44.6

44.8

0.2

5.07

28.40

5.46

Gloria

GLOR15-032

850

109.1

113.5

4.4

0.376

0.33

0.380

33.3

34.6

1.3

12.89

11.44

13.05

Gloria

incl

109.1

110.5

1.4

1.054

0.76

1.065

33.3

33.7

0.4

36.13

26.10

36.49

Gloria

and

122.0

123.7

1.7

3.653

6.20

3.739

37.2

37.7

0.5

125.25

213.00

128.21

Gloria

GLOR15-033

-18

375

136.1

147.0

10.9

0.358

0.59

0.366

41.5

44.8

3.3

12.28

20.20

12.56

Gloria

incl

146.5

147.0

0.5

1.009

0.68

1.018

44.7

44.8

0.2

34.60

23.20

34.92

Gloria

GLOR15-034

-35

375

200.2

208.6

8.4

4.093

6.24

4.180

61.0

63.6

2.6

140.35

214.14

143.31

Gloria

incl

203.0

204.7

1.7

17.990

26.90

18.363

61.9

62.4

0.5

616.80

923.00

629.60

Gloria

GLOR15-035

349

1301

99.4

100.4

1.0

0.999

0.80

1.010

30.3

30.6

0.3

34.26

27.30

34.64

Gloria

and

108.0

117.0

9.0

0.696

3.05

0.739

32.9

35.7

2.7

23.88

104.76

25.33

Gloria

incl

108.0

112.0

4.0

1.445

6.61

1.536

32.9

34.1

1.2

49.53

226.70

52.67

Gloria

GLOR15-036

190

405

No Significant Intercepts

*Calculated gold equivalent ratio 72.12:1

*intercepts are not true widths

Attachment Available: http://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Gloria_Sig_Intercepts_FINAL-ef5ea3892eb0a02b964c1d9e47cb040f.pdf
Attachment Available: http://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Figure_1_Hollister_Exploration_PR-4726d77f4319adcd9ecf607cdfc413b4.pdf
Attachment Available: http://www.marketwire.com/library/MwGo/2016/10/11/11G117642/Figure_2_for_Hollister_Exploration_PR-00e441b8e5c48d68b5922460a0aad804.pdf

For More Information
John Seaberg
Senior Vice President, Investor Relations and Corporate Development
O: 775-284-5757
M: 303-668-7991
jseaberg@klondexmines.com